"We have enjoyed a long and productive relationship with Ramsay Health Care and this three year agreement cements that going forward," he said.

Mr Rex said that the three year agreement represented a positive outcome for both parties.

"Ramsay Health Care is committed to providing our patients with the quality health care that they have come to know and expect and this agreement ensures that this can continue for Medibank and ahm members."

The new contract between Medibank and Ramsay Health Care commences on 1 September 2013. Medibank and ahm members continue to be covered as normal when they attend a Ramsay Health Care hospital.